Dear Occupy Wall Street: The Great Disparity Between Labor And Profit Is Starting To Reverse

Whiff of rebalancing in the labor and profit
shares. Aggregate hours worked for January/February
stand 3.0% annualized above Q4. But expenditure-side GDP inputs
(such as today's sharp widening in the trade deficit) are
pointing to a weaker GDP than that (closer to 2%). This profile hints at a long-awaited
"rebalancing" in the economy in favor of the hugely depressed
labor share of GDP but away from the elevated profit share of
GDP.

The GDP-less recovery was fantastic for investors — lots of
profit, not much need to hire people — and so one has to wonder
whether the opposite situation (decent labor gains, not great
growth) will be so favorable.

Surely seeing strong jobs growth is unambiguously good, but
whether there's a bright line between jobs gains and gains in the
market remains to be seen.